Lean Management Transforming Industry

11 Pages 2633 Words

Lean Management: Transforming Industry

Introduction:

Management theories and techniques have been developed and debated for over a century. Typical management techniques revolve around mass production and management of people rather than the management of the process. The Japanese have long been recognized as world leaders in manufacturing. The have successfully developed new and innovative management practices throughout their organizations to improve their competitive position. Today the Japanese are leading the quest for continuous improvement by applying Lean Management principles, the latest continuous improvement method in the business world. These principles have been applied successfully to a variety of disciplines with impressive results.

The goals and objectives of lean are to provide the necessary tools to eliminate “muda”, the Japanese word for waste, and improve profits in any industry. Applying lean principles to wasteful conditions will lead to compelling results. According to Womack and Jones, “inventories can be reduced by 90%, productivity improved 30%, space utilization improved 50%, and quality improved 85%...” in a typical transition to lean management (Womak, 210).

The Japanese have been highly successful at transforming industries to lean. Leadership with openness to change has been a cornerstone to their success. Additionally, their ability to adhere to the basic principles of lean is steadfast. All firms in all industries must take advantage of lean principles and the way in which the Japanese successfully implement those principles. Lens Crafters assemble prescription glasses in one hour, Dell computers deliver custom built computers in less than a week, fast food chains like McDonalds and Burger King offer hot food made to order in minutes, an Austin company builds custom homes in 30 days, and overnight deliveries by Federal Express are all examples of companies that have taken...